MUMBAI: Steel manufacturer Tata Steel has given its accord to divest its 50 per cent stake in Dutch metals recycling company HKS Scrap Metals to Euro Scrap Alliance (ESA), a unit of Germany's TSR, for an undisclosed amount.
However, the transaction is pursuant to the approval from the European Commission and will mark Tata Steel's exit from ferrous and non-ferrous metals recycling firm HKS Scrap Metals Co.
“ESA already holds the remaining 50% stake in HKS and as a result of the deal ESA will become the 100% owner of HKS,” as per the statement issued by the Tata Steel.
However, the financial details of the deal were not disclosed by the company. The transaction is a part of Tata Steel's business strategy to focus on core activities.
Tata Steel has manufacturing operations in many European countries with major plants located in UK, the Netherlands, Germany, France and Belgium.